Technical outlook and chart setups:
The EURUSD pair made a meaningful top on December 08, 2016, which can safely be defined as wave (2) of the drop from 1.1300 levels earlier. The pair is working out its wave 5, within wave (3) as depicted here, after terminating the 4th wave at 1.0480 levels today. If this wave structure holds well, we should see EURUSD dropping lower towards 1.0300 and 1.0200 levels going forward. The pair is expected to finally terminate around parity levels. On the flip side, a push above 1.0550 and subsequently 1.0680 levels would take the price to 1.0900 levels before reversing lower. It is therefore good to remain short around these levels against 1.0680. Immediate resistance is seen at 1.0680 levels, while support is at 1.0350 levels.
Trading recommendations:
Remain short now, stop around 1.0680 levels and target is 1.0300 and 1.0250.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com